Solution of Q 5 Fundamentals of Partnership Firm TS Grewal 2023-24 [CBSE]
Step-by-step solution of Question 5, Chapter 1 Accounting for Partnership Firms – Fundamentals, TS Grewal Class 12 Accountancy 2023-24 for the CBSE Board.
Question 5
Harshad and Dhiman are in partnership since 1st April, 2022. No partnership agreement was made. They contributed ₹4,00,000 and ₹1,00,000 respectively as capitals. In addition, Harshad had given loan of ₹1,00,000 to the firm on 1st October, 2022. Due to long illness, Harshad could not participate in business activities from 1st August, 2022 to 30th September, 2022. Profit for the year ended 31st March, 2023 was ₹1,80,000. Dispute has arisen between Harshad and Dhiman.
Harshad Claims:
- (i) He should be given interest @ 10% per annum on capital and loan;
- (ii) Profit should be distributed in the ratio of capital.
Dhiman Claims:
- (i) Profits should be distributed equally;
- (ii) He should be allowed ₹2,000 p.m. as remuneration for the period he managed the business in the absence of Harshad;
- (iii) Interest on Capital and loan should be allowed @ 6% p.a.
You are required to settle the dispute between Harshad and Dhiman. Also prepare Profit & Loss Appropriation Account.
Solution
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About this solution
This is Chapter 1 Accounting for Partnership Firms – Fundamentals of TS Grewal Edition 2023-24.
Written by Vijay Adarsh, teaching commerce since 2003 to Class 11, Class 12, B.Com, CA, CS and CMA students.
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